diff --git a/src/08_generate_rootfs/etc/prepare.sh b/src/08_generate_rootfs/etc/01_prepare.sh
similarity index 65%
rename from src/08_generate_rootfs/etc/prepare.sh
rename to src/08_generate_rootfs/etc/01_prepare.sh
index ce05206b5..e1b9aa552 100755
--- a/src/08_generate_rootfs/etc/prepare.sh
+++ b/src/08_generate_rootfs/etc/01_prepare.sh
@@ -1,7 +1,9 @@
 #!/bin/sh
 
+echo "Suppress most kernel messages."
 dmesg -n 1
 
+echo "Mount all core filesystems."
 mount -t devtmpfs none /dev
 mount -t proc none /proc
 mount -t tmpfs none /tmp -o mode=1777
diff --git a/src/08_generate_rootfs/etc/switch.sh b/src/08_generate_rootfs/etc/02_overlay.sh
similarity index 96%
rename from src/08_generate_rootfs/etc/switch.sh
rename to src/08_generate_rootfs/etc/02_overlay.sh
index d8fea5efb..2deaee910 100755
--- a/src/08_generate_rootfs/etc/switch.sh
+++ b/src/08_generate_rootfs/etc/02_overlay.sh
@@ -106,7 +106,7 @@ for DEVICE in /dev/* ; do
     mkdir -p $UPPER_DIR
     mkdir -p $WORK_DIR
 
-    mount -t overlay -o lowerdir=/mnt:$OVERLAY_DIR,upperdir=$UPPER_DIR,workdir=$WORK_DIR none /mnt 2>/dev/null
+    mount -t overlay -o lowerdir=$OVERLAY_DIR:/mnt,upperdir=$UPPER_DIR,workdir=$WORK_DIR none /mnt 2>/dev/null
 
     OUT=$?
     if [ ! "$OUT" = "0" ] ; then
@@ -142,9 +142,9 @@ mount --move /tmp /mnt/tmp
 # The new mountpoint becomes file system root. All original root folders are
 # deleted automatically as part of the command execution. The '/sbin/init' 
 # process is invoked and it becomes the new PID 1 parent process.
-exec switch_root /mnt /sbin/init
+exec switch_root /mnt /etc/03_init.sh
 
-echo "You can never see this... unless there is a serious bug..."
+echo "(/etc/02_overlay.sh) - there is a serious bug..."
 
 # Wait until any key has been pressed.
 read -n1 -s
diff --git a/src/08_generate_rootfs/etc/03_init.sh b/src/08_generate_rootfs/etc/03_init.sh
new file mode 100755
index 000000000..f1d53f3c4
--- /dev/null
+++ b/src/08_generate_rootfs/etc/03_init.sh
@@ -0,0 +1,46 @@
+#!/bin/sh
+
+# If you have persistent overlay support then you can edit this file and replace
+# the default initialization  of the system. For example, you could use this:
+#
+# exec setsid cttyhach sh
+#
+# This gives you PID 1 shell inside the initramfs area. Since this is a PID 1
+# shell, you can still invoke the original initialization logic by executing
+# this command:
+#
+# exec /sbin/init
+
+cat << CEOF
+
+  Wait 5 seconds for the default system initialization process based on the
+  files /sbin/init and /etc/inittab or press any key for PID 1 shell.
+
+CEOF
+
+read -t 5 -n1 -s key
+
+if [ "$key" = "" ] ; then
+  # Use default initialization logic based on configuration in '/etc/inittab'.
+  echo "Executing /sbin/init as PID 1."
+  exec /sbin/init
+else
+
+# Using no indentation for this snippet or otherwise it causes kernel panic.
+cat << CEOF
+
+  This is PID 1 shell. Execute the following in order to continue with the
+  default system initialization process:
+
+  exec /sbin/init
+
+CEOF
+
+  exec setsid cttyhack sh
+fi
+
+echo "(/etc/03_init.sh) - there is a serious bug..."
+
+# Wait until any key has been pressed.
+read -n1 -s
+
diff --git a/src/config_predefined/README.txt b/src/config_predefined/README.txt
new file mode 100644
index 000000000..f458cbda5
--- /dev/null
+++ b/src/config_predefined/README.txt
@@ -0,0 +1,5 @@
+TODO 1- add documentation about this folder and the purpose of the predefined
+configuration file.
+
+TODO 2 - Edit all comments and readme files to use maximum 80 chars per line.
+